Correlation Between CapitaLand Investment and 70137WAG3
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By analyzing existing cross correlation between CapitaLand Investment Limited and US70137WAG33, you can compare the effects of market volatilities on CapitaLand Investment and 70137WAG3 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CapitaLand Investment with a short position of 70137WAG3. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and 70137WAG3.
Diversification Opportunities for CapitaLand Investment and 70137WAG3
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CapitaLand and 70137WAG3 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and US70137WAG33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US70137WAG33 and CapitaLand Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CapitaLand Investment Limited are associated (or correlated) with 70137WAG3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US70137WAG33 has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and 70137WAG3 go up and down completely randomly.
Pair Corralation between CapitaLand Investment and 70137WAG3
Assuming the 90 days horizon CapitaLand Investment is expected to generate 1.34 times less return on investment than 70137WAG3. In addition to that, CapitaLand Investment is 11.08 times more volatile than US70137WAG33. It trades about 0.0 of its total potential returns per unit of risk. US70137WAG33 is currently generating about 0.07 per unit of volatility. If you would invest 9,158 in US70137WAG33 on August 30, 2024 and sell it today you would earn a total of 226.00 from holding US70137WAG33 or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.27% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. US70137WAG33
Performance |
| Timeline |
| CapitaLand Investment |
| US70137WAG33 |
CapitaLand Investment and 70137WAG3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and 70137WAG3
The main advantage of trading using opposite CapitaLand Investment and 70137WAG3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, 70137WAG3 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 70137WAG3 will offset losses from the drop in 70137WAG3's long position.| CapitaLand Investment vs. Applied Blockchain | CapitaLand Investment vs. Choice Hotels International | CapitaLand Investment vs. Constellation Energy Corp | CapitaLand Investment vs. Palladyne AI Corp |
| 70137WAG3 vs. Integral Ad Science | 70137WAG3 vs. Playtika Holding Corp | 70137WAG3 vs. Fidus Investment Corp | 70137WAG3 vs. CapitaLand Investment Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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